SPOT - Spotify Technology S.A.

NYSE - Nasdaq Real Time Price. Currency in USD
+0.05 (+0.04%)
As of 2:53PM EST. Market open.
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Previous Close133.66
Bid133.50 x 1200
Ask133.70 x 800
Day's Range131.87 - 134.77
52 Week Range103.29 - 198.99
Avg. Volume1,774,832
Market Cap24.221B
Beta (3Y Monthly)N/A
PE Ratio (TTM)N/A
EPS (TTM)-7.63
Earnings DateFeb 6, 2019
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est176.35
Trade prices are not sourced from all markets
  • TechCrunch Conversations: Direct listings
    TechCrunch3 days ago

    TechCrunch Conversations: Direct listings

    Last April, Spotify surprised Wall Street bankers by choosing to go public through a direct listing process rather than through a traditional IPO. The direct listing provided liquidity for shareholders, but unlike most traditional IPOs, did not raise any money for the company.

  • Recommended Reading: How we got two Fyre Festival documentaries
    Engadget3 days ago

    Recommended Reading: How we got two Fyre Festival documentaries

    Fyre Fight: The inside story of how we got two warring Fyre Festival documentaries in the same week Scott Tobias, The RingerWe've known for a while now that Hulu and Netflix were both working on documentaries chronicling the ill-fated influencer trainwreck that was the Fyre Festvial.

  • App Store Could Be 'Next Shoe To Drop' For Apple Stock
    Investor's Business Daily4 days ago

    App Store Could Be 'Next Shoe To Drop' For Apple Stock

    Apple's business woes might not end with slowing iPhone sales. Issues with the company's App Store could be "the next shoe to drop," a Wall Street analyst says.

  • Spotify's in-car music player may go on sale this year
    Engadget4 days ago

    Spotify's in-car music player may go on sale this year

    Financial Timessources claim the service plans to launch the in-car player sometime later in 2019 for roughly $100. While the earlier leak mentioned voice control, the add-on would also include preset buttons that take you directly to playlists. Both Spotify and its reported hardware partner, Flex, have declined to comment on the apparent scoop.

  • Slack Changed ‘Simply Awful’ Logo: Is an IPO Coming Soon?
    Market Realist4 days ago

    Slack Changed ‘Simply Awful’ Logo: Is an IPO Coming Soon?

    Slack Changed ‘Simply Awful’ Logo: Is an IPO Coming Soon?Slack If you work in an office environment, then you’re probably using Slack—or at least you must have heard about it. Slack Technologies, a provider of cloud-based apps and services,

  • CNBC4 days ago

    A top Apple analyst believes there's another 'shoe to drop' for the stock

    Top analyst Toni Sacconaghi tells clients that more companies are refusing to pay the fee that Apple collects for app transactions, posing a headwind to its Services segment. "Netflix, Spotify, and Fortnite have all stopped / threatened to stop paying the so-called 'Apple Tax' of 15 to 30 percent on App Store revenues," Sacconaghi writes. Apple has heralded Services — which includes the App Store, Apple Music subscriptions, Apple Pay and iCloud storage — as its next revenue generator.

  • Apple Likely to Lower Hiring Rate at Divisions Except AI Team
    Zacks4 days ago

    Apple Likely to Lower Hiring Rate at Divisions Except AI Team

    Apple (AAPL) is likely to lower hiring rate in some of its divisions, except the AI team where the pace is expected to remain strong.

  • Does Twitter Have the War Chest to Defend Its Turf?
    Market Realist5 days ago

    Does Twitter Have the War Chest to Defend Its Turf?

    What’s Coming Up in Twitter’s Q4 2018 Earnings Report?(Continued from Prior Part)Tightening race for advertising dollars Twitter (TWTR) is in an industry that continues to see tightening competition. In addition to the company’s traditional

  • Apple Inks Deal with Verizon to Boost Services Segment
    Market Realist5 days ago

    Apple Inks Deal with Verizon to Boost Services Segment

    Apple Updates: Verizon Deal, HomePod in China, and MoreApple inks deal with VerizonApple (AAPL) has deepened its ties with the US (SPY) top mobile carrier Verizon (VZ), as it is offering Apple Music free services with some of Verizon’s premium

  • 7 Companies Apple Should Consider Buying
    InvestorPlace5 days ago

    7 Companies Apple Should Consider Buying

    One of the world's largest companies -- Apple (NASDAQ:AAPL) -- with one of the biggest net cash balances ever -- $122 billion -- continues to promise that it will be "net cash neutral" over time. That means AAPL still has $122 billion to deploy to buybacks, dividends, acquisitions, investments, so on and so forth. At this point in time, it seems the smartest path forward would be for Apple to use that $122 billion on a big-time acquisition. Recent quarterly numbers underscore that peak iPhone is here. While the company has nice growth initiatives through new hardware like the Apple Watch and services businesses like Apple Pay and the App Store, none of those new initiatives are groundbreaking enough to fully replace what will soon be a flat iPhone business. Thus, Apple can either be a tepid growth business forever going forward, or the company can recharge growth by using its huge net cash balance to acquire a hyper-growth company. The second option sounds far more attractive, and should be the route that optimizes long-term gains for Apple stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The list of companies Apple could buy is long. The company has enough net cash to essentially acquire any company in the world. But, the list of companies Apple should buy is short. * 7 Beaten-Up Housing Stocks Due for a Bounce Back Indeed, I think it as short as seven companies. Thus, let's take a look at seven companies that Apple should buy as it aims to be net cash neutral over the next few years. ### Netflix (NFLX) Source: Vivian D Nguyen via Flickr (Modified) The most obvious M&A use of Apple's huge net cash balance is an all-in acquisition of streaming giant Netflix (NASDAQ:NFLX). No one can really deny the momentum that Netflix has by simply being the brand name in the streaming market. Nor can they deny the huge potential of that market, as the world increasingly cuts the cord and pivots to streaming, or the competitive moat that Netflix has established through quality and diverse original content. Because of these three factors, Netflix promises to be a big growth company for a lot longer. Apple could use that growth. As the hardware business dries up, the company is doubling down on the software business, and that reportedly includes a big dive into streaming and original content. Netflix would give Apple a head-and-shoulders leader in that market. Apple can also afford that growth. Netflix is a $150 billion company. Some cash and some debt could easily fund this acquisition. Overall, Netflix is a highly attractive target for Apple as the latter pivots toward creating software services to monetize the install base. ### Spotify (SPOT) Source: Spotify If Netflix is a "reach for the stars" acquisition, then Spotify (NYSE:SPOT) is a much more grounded acquisition target with still promising upside potential. Spotify is trying to do in the streaming music market what Netflix did in the streaming video market. Granted, there's no original content, so the moat is much smaller. Also, Apple Music is a thing, and it has already dethroned Spotify in the U.S., Canada and Japan. Thus, this acquisition doesn't provide as much firepower or unique assets as a Netflix acquisition. But, it's also much cheaper, at just $20 billion. It would also give Apple complete control over the streaming music market, a position that AAPL could use to its advantage down the road through exclusivity agreements and price hikes. Plus, as mentioned earlier, Apple is pivoting big time into the software side of its business. Spotify fits right into that wheelhouse. * Top 10 Global Stock Ideas for 2019 From RBC Capital Overall, Spotify is a good acquisition target for Apple because the latter needs mobile software growth to offset plateauing hardware growth, and Spotify gives them just that. ### Disney (DIS) Source: Baron Valium via Flickr Apple wants to get into the streaming and original content market. But, in order to be successful in that market, Apple needs content. Right now, the company doesn't have any. But, Disney (NYSE:DIS) has a bunch of it, and all those content assets are arguably very undervalued today. Disney is a global media company with a brand name that is second to none. The company owns perhaps the most valuable content assets in the world, and between Star Wars, Marvel and Pixar movies, the company dominates the box office every year. The problem with Disney is that, as the world has pivoted to streaming, the company has been slow to catch on, and post box-office content distribution hasn't kept up with the times. Apple is unparalleled in terms of its digital reach to the consumer. Between iPhones, iPads, Macs and Apple Watches, most U.S. and global consumers have some digital connection point with Apple. Thus, it should be easy for Apple to push a streaming service. But, AAPL needs the content. Disney has the content, and for only $170 billion (that includes the highly lucrative parks and box office businesses). Overall, Disney is an attractive acquisition target for Apple because, together, the two companies could create a very good streaming service that is rich with content and very easy to access. ### Tesla (TSLA) Source: Shutterstock A lot of investors and analysts are saying that Apple's last truly revolutionary product was the iPhone, and that here hasn't been a breakthrough product ever since. Now, with the iPhone growth cycle on its last legs, those same analysts and investors are saying that Apple desperately needs to find that next breakthrough product before time runs out. Let's say hello to Tesla (NASDAQ:TSLA). This is a breakthrough company with not just one, but a portfolio of breakthrough products. That portfolio today includes the Model S, Model X and Model 3. Down the road, it will include many more Tesla vehicles, all of which share the same core electric powered characteristic. The benefits to Apple of such an acquisition would be enormous. Apple has been reportedly working on a car for a long time now, but this project hasn't materialized anything substantial to date. Acquiring Tesla would give Apple broad exposure to the auto market. Plus, Apple could easily incorporate and integrate its numerous consumer-facing hardware and software products more seamlessly into Tesla vehicles. The benefits therein to both Tesla's auto business and Apple's services business would be huge. * 10 Growth Stocks With the Future Written All Over Them Overall, Apple should buy Tesla because Apple needs a breakthrough hardware product to replace the iPhone, and Tesla gives them a portfolio of breakthrough hardware products while also providing synergies with the services business. ### Shopify (SHOP) Source: Shopify via Flickr One of the markets in which Apple has a small presence today is e-commerce. But, Apple has all the resources to make a big play in the e-commerce market. If AAPL does that, a natural first step would be the acquisition of Shopify (NYSE:SHOP). Shopify provides e-commerce solutions for retailers of all shapes and sizes. Essentially, the company helps anyone and everyone create an e-commerce business. This is a big growth market because: 1) e-commerce is only growing in adoption, and 2) as e-commerce grows in popularity, more retailers will shift toward digital, and the e-commerce market will become increasingly decentralized and less consolidated. As such, over the next several years, I predict a majority of e-commerce dollar volume will flow through Shopify-powered stores. Thus, Shopify has all the e-commerce merchants and transactions. Apple creates a majority of the hardware products that enable those transactions. A marriage of these two companies would make perfect sense. Apple would control the whole e-commerce process, and could adapt the iOS ecosystem so that it works seamlessly with Shopify-powered stores, thereby ushering in an era of truly friction-less e-commerce. Overall, if Apple is looking to make a play in the red-hot e-commerce market, a natural first step would be to acquire Shopify, a company that would give Apple access to a large volume of e-commerce merchants and transactions. ### iRobot (IRBT) Source: Shutterstock Going back to the "Apple needs a breakthrough hardware product" theme, a less expensive way to accomplish this than buying Tesla, is to buy iRobot (NASDAQ:IRBT). iRobot is a $2 billion company that is known for its robotic vacuum cleaners, Roomba. Roomba has been a huge success for iRobot as the robotic vacuum market has gradually gained traction over the past several years, and this has powered big gains in revenues, profits and the stock. But, Apple isn't interested in a robotic vacuum cleaner. That's too small of a product to move the needle. But, Apple should be interested in the entire consumer robotics space. For iRobot, robotic vacuum cleaners are just the tip of the iceberg. Over the next several years, you will see robotic lawnmowers, robotic window cleaners, robotic car washers, robotic chefs, so and so forth. In sum, all these consumer robotics products provide a huge long-term opportunity. If Apple were to couple its resources and experience with iRobot's leadership position in this market, the two could create an immensely valuable consumer robotics company with multiple breakthrough automation products that become household norms over the next several years. * 7 Bankruptcy Stocks to Watch in 2019 Overall, iRobot is an attractive acquisition target for Apple because, for just $2 billion, Apple could gain entry into what could be a very large consumer robotics market that is still in the early stages of hockey stick growth. ### Roku (ROKU) Source: Shutterstock The last entry on this list may surprise people. After all, Roku (NASDAQ:ROKU) and Apple are essentially competitors in the streaming device market. But, the synergies of an acquisition far outweigh the costs. Despite Apple's best attempts in the streaming device market, the lion's share of this market still belongs to Roku. The company controls roughly 40% of the streaming device market, and 25% of the smart TV market. Thus, Apple trying to beat Roku in this market, while possible, is an uphill battle. Instead, Apple should just buy Roku. AAPL could absorb the entire streaming player and platform businesses into its own ecosystem, and put other competitors in this market, like Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), at a huge disadvantage. Buying Roku would also be pretty cheap (sub-$5 billion market cap), and it would give Apple wider reach to push a potential streaming service down the road. Overall, as opposed to trying to squash Roku, Apple should just buy them, and create a streaming platform business that is unrivaled in terms of reach and scale. As of this writing, Luke Lango was long AAPL, NFLX, DIS, TSLA, SHOP, ROKU, AMZN and GOOG. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Growth Stocks With the Future Written All Over Them * 7 Reasons Why Buffett's Bet on Apple Stock Is a Good One * 10 Companies That Could Post Decelerating Profits Compare Brokers The post 7 Companies Apple Should Consider Buying appeared first on InvestorPlace.

  • Spotify launches Car View on Android to make using its app less dangerous behind the wheel
    TechCrunch5 days ago

    Spotify launches Car View on Android to make using its app less dangerous behind the wheel

    Spotify is making it easier to use its streaming app in the car, when the phone is connected to the vehicle over Bluetooth. The company today confirmed the launch of a new feature called "Car View," which is a simplified version of the service's Now Playing screen that includes larger fonts, bigger buttons, and no distractions from album art. In Car View, you're only shown the track title and artist, so you can read the screen with just a glance.

  • Apple Traps Consumers in an App Store War
    Bloomberg5 days ago

    Apple Traps Consumers in an App Store War

    Netflix Inc. recently stopped letting new subscribers sign up through the company’s iPhone and iPad apps, to avoid handing a cut of subscription revenue to Apple. The Netflix iOS app now has an option to log into an account, or … that’s it.

  • Will Pandora Shareholders Back Sale to Sirius?
    Market Realist5 days ago

    Will Pandora Shareholders Back Sale to Sirius?

    Updates from Online Music and Video Providers: SPOT, P, IQ(Continued from Prior Part)Shareholder vote scheduled Pandora (P) is scheduled to hold a special stakeholder meeting on January 29. The purpose of the meeting is primarily to allow

  • Apple Extends Alliance With Verizon to Boost Music Service
    Zacks5 days ago

    Apple Extends Alliance With Verizon to Boost Music Service

    Apple (AAPL) expands ties with Verizon by offering its Music service for free to Verizon users availing its top plans.

  • Spotify's Car View helps cut the distractions for drivers
    Engadget5 days ago

    Spotify's Car View helps cut the distractions for drivers

    Following Spotify's integration with Google Maps and Waze, the music streaming service is rolling out some in-car controls within its own app. 9to5Googlehas spotted a "Car View" mode inside Spotify for Android, which automatically enables a driver-friendly interface when it detects a Bluetooth connection. Users have been tweeting about the update as far back as December, with Spotify claiming that it "wasn't available yet," emphasising that this could just be an ongoing test.

  • How Spotify Aims to Compete in Podcast Market
    Market Realist5 days ago

    How Spotify Aims to Compete in Podcast Market

    Updates from Online Music and Video Providers: SPOT, P, IQ(Continued from Prior Part)Spotify pursuing exclusive podcast dealsAs TechCrunch has reported, Spotify (SPOT) wants to focus more of its attention this year on developing its podcast

  • How Spotify Is Preparing for India Launch
    Market Realist5 days ago

    How Spotify Is Preparing for India Launch

    Updates from Online Music and Video Providers: SPOT, P, IQIt’s almost hereSpotify (SPOT) is preparing to launch in India by the end of January, Variety reported citing people familiar with the company’s plans. While the exact date that Spotify

  • How Netflix’s Rate Hike Could Impact Consumers
    Market Realist6 days ago

    How Netflix’s Rate Hike Could Impact Consumers

    What's the Potential Impact of Netflix's Subscription Hike?(Continued from Prior Part)Netflix’s hike in the subscription planStreaming king Netflix (NFLX) recently announced that it will hike prices of its monthly subscription plans by 13% to 18%

  • Top IPOs of 2018
    Investopedia6 days ago

    Top IPOs of 2018

    The number of companies engaged in initial public offerings (IPOs) in the U.S. in 2018 far surpassed rates in 2017 and 2016. The first three quarters of the year brought about 173 IPOs, raisinga combined $45.

  • Tinder test lets you share Spotify clips with matches
    Engadget6 days ago

    Tinder test lets you share Spotify clips with matches

    Tinder is experimenting with allowing daters to share music via Spotify right inside their conversations. The feature, first spotted by the blog MSPowerUser and confirmed by TechCrunch, is taking place in a number of markets around the world and Spotify appears to be the only streaming service involved in the test. Users already had the ability to select an "anthem" and share their most played artists by linking their Spotify account to Tinder.

  • Spotify Signs Huge Deal with T-Series ahead of India Launch
    Market Realist6 days ago

    Spotify Signs Huge Deal with T-Series ahead of India Launch

    Tech and Media Updates: Apple, Comcast, Facebook, and Spotify(Continued from Prior Part)Spotify’s streaming service will have access to whole T-Series catalogTop Internet companies have been looking to get a slice of the fast-growing Indian

  • Tinder is testing the ability to share Spotify music clips in chat
    TechCrunch6 days ago

    Tinder is testing the ability to share Spotify music clips in chat

    Tinder has already developed a fairly robust chat platform within its dating app, with support for sharing things like Bitmoji and GIFs, and the ability to "like" messages by tapping a heart icon. Now, the company is testing a new integration - sharing music via Spotify. The test is currently taking place across global markets, and Spotify is the only music service involved.

  • InvestorPlace6 days ago

    Apple Stock Gets a Lift From Verizon Deal to Bundle Apple Music

    Apple (NASDAQ:AAPL) continues to trail Spotify (NYSE:SPOT) as the streaming music services race to add paid subscribers. However, AAPL just got a big boost, at least in the American market. Verizon (NYSE:VZ) announced that an Apple Music subscription will be included for free with several of its premium cellular plans. ### Verizon Expands AAPL Partnership, Offers Free Apple Music for Premium Unlimited Plans On Jan. 15, Verizon announced that it was expanding its partnership with Apple. Starting January 17, customers who subscribe to Verizon's Beyond Unlimited and Above Unlimited cellular plans will get Apple Music bundled with their plan for free. That saves the customer $9.99 monthly compared to paying for the streaming music service from Apple. * Top 10 Global Stock Ideas for 2019 From RBC Capital Customers who subscribe to the less expensive Go Unlimited plan will get a free six month trial of Apple Music -a continuation of a program Verizon launched last August. InvestorPlace - Stock Market News, Stock Advice & Trading Tips ### What's In It for Verizon? The appeal for Verizon is a perk that has mass appeal. The company is the largest wireless provider in the U.S., with a narrow lead over AT&T (NYSE:T) -- in Q3, VZ had 153.97 million subscribers compared to the 150.25 million signed up with AT&T. With unlimited data plans sounding largely the same to consumers, bundling a service like Apple Music is a way to stand out from the pack. It also helps Verizon to sell iPhones. Having the AAPL smartphones in its showroom and being able to offer free Apple Music as a bonus could help to move more iPhones off the shelves. T-Mobile (NASDAQ:TMUS) offers free Netflix (NASDAQ:NFLX) with some plans. From the perspective of the network provider, streaming music uses considerably less bandwidth than streaming video. That means less strain on its infrastructure should eligible customers take advantage of their free streaming ability. ### What's In It for Apple? For AAPL, there are three wins here. The first is the potential to sell more iPhones, at least through Verizon. As everyone knows by now, the company is struggling to keep up the pace of iPhone sales that briefly made it the world's first trillion dollar company last year. The second is the prospect of adding more Apple Music subscribers. Since launching in 2015, Apple Music has grown rapidly, but has failed to gain ground on market leader Spotify. Verizon doesn't spike out how many of its customers subscribe to the Beyond Unlimited and Above Unlimited plans, but with nearly 154 million total subscribers there is potential there for Apple Music to snag some significant additional growth. With increased emphasis on Services revenue to take the heat of iPhone sales, that's more important than ever. Of course there's also the risk that some existing Apple Music subscribers will end up being converted to free Verizon users, diluting the overall subscriber base growth potential. Finally, Apple's streaming video service is expected this year. The more subscribers AAPL can hook on Apple Music, the better the odds it can convert them to customers for that video offering as well. ### Who Pays for This? Good question. Neither Apple nor Verizon has come out and said who is actually paying for the "free" Apple Music subscriptions. The most likely arrangement is that AAPL is subsidizing Verizon, offering a discounted rate. However, nothing has been confirmed. The only thing we know for sure is that Beyond Unlimited and Above Unlimited customers won't be footing the bill -- Verizon has not announced any price increases to go along with the perk (although the fine print does note customer are responsible for paying any related taxes). 5G service is beginning to roll out, with the potential to cause churn among wireless carriers as they fight over bragging rights about their next generation coverage. At the same time, companies like Apple are struggling to keep smartphone sales humming. And competition is heating up in the streaming video business, with big new players set to enter the market this year. With so much disruption, look for more of these partnerships in coming months as the various players maneuver for position and look for advantages to lock in customers. As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Top 10 Global Stock Ideas for 2019 From RBC Capital * 10 A-Rated Stocks the Smart Money Is Piling Into * 5 Best Bank ETFs for This Week's Earnings Avalanche Compare Brokers The post Apple Stock Gets a Lift From Verizon Deal to Bundle Apple Music appeared first on InvestorPlace.

  • 5 Reasons Why You Need to Buy Facebook Stock At This Price
    InvestorPlace7 days ago

    5 Reasons Why You Need to Buy Facebook Stock At This Price

    Perhaps no other publicly traded company suffered as much ignominy in 2018 as Facebook (NASDAQ:FB). Up until last spring, almost everyone revered FB stock. First and foremost, the social-media firm dominated its core industry. Further, it continued to disrupt its rivals in the space, along with other unrelated ventures. But then the mainstream media reported on the Cambridge Analytica debacle, curbing the momentum in Facebook stock. In a nutshell, FB inadvertently allowed a politically motivated data-research firm to exploit subscriber information without their knowledge. The optics were especially controversial because Cambridge Analytica may have helped President Trump's electoral campaign. Fast forward a few months, and FB stock was back on its record-breaking ways. But that too met an unsightly end. Management released its earnings results for the second quarter, which on paper didn't meet Wall Street's lofty expectations. Shares absorbed an ugly beatdown from which they have yet to recover. InvestorPlace - Stock Market News, Stock Advice & Trading Tips As if things weren't already bad enough, The New York Times brought to the public another embarrassing gaffe. This time, FB may have facilitated major companies such as Netflix (NASDAQ:NFLX), Spotify (NYSE:SPOT), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) to breach various privacy protocols. These violations include allowing companies to read private messages. * 10 Growth Stocks With the Future Written All Over Them After multiple controversies and humiliations, it's no surprise that Facebook stock fell in the dumps. Nevertheless, I think contrarians should consider taking a chance on the social-media giant for these five reasons: ### "Ideal" Time to Buy FB Stock When reading about Facebook stock, we're mostly surrounded with negative hyperbole. That's quite understandable considering the circumstances. But from a contrarian perspective, this setting represents the ideal time to pick up shares. I'd approach this situation by asking the opposite question: would you sell FB stock at this time? While that approach is tempting, it may also lead to a big mistake. It's very likely that most, if not all of the bad news is already baked in. Plus, Fortune 500 companies with multi-billion dollar businesses tend to overcome their controversies. My best example is Equifax (NYSE:EFX). In the fall of 2017, EFX stock tumbled when the credit-monitoring agency admitted compromising millions of social security numbers. If any organization deserved indefinite moral outrage, it's Equifax. But discount last year's market meltdown, and you have a tremendously viable controversy play. From trough to peak, EFX gained over 50%. I've used the Equifax argument a few times before because I wrote about the subject. However, other examples of consumer-related controversies exist, including Target's (NYSE:TGT) data breach. Home Depot (NYSE:HD) suffered a similar breach. In both cases, their respective stocks eventually moved higher from the controversy. ### Controversies Have a Lesser Impact on Facebook Stock When the Cambridge Analytica story made headlines, the fallout hurt Facebook stock. After trudging largely sideways in the first few months of 2018, shares took a decidedly negative trajectory around mid-March. Shares lost about 16% before climbing back up. After the "disappointing" results from its Q2 earnings report, FB stock took an uppercut to the chin. In one fell swoop, the once-universally loved social-media firm dropped 19%. Worse yet, it sparked a string of bearishness from which the bulls have not effectively responded. So when Facebook was hit with another controversy -- this time, the not-so-private messages debacle -- it was old news. In my opinion, the American public grew tired about hearing the same old thing. They got the message: Facebook is a controversial company. That's not to say that Wall Street didn't punish the organization because they did. However, the magnitude was yawn-inspiring. The day after the NYT expose, Facebook stock slipped over 7%. Looking at the incident's peak-to-trough metric, shares lost almost 14%. * 10 Companies That Could Post Decelerating Profits But the company has already recovered those losses. That tells me that the bad news is baked in. More importantly, investors are ready to hear a new (bullish) narrative. ### FB Is Extremely Undervalued When I invest, I avoid focusing on any one metric. Due to the dynamic investment sector, as well as the legal games that management can play with their books, certain fundamental indicators are vulnerable to misinterpretation. One of those is the price-to-earnings ratio. Often times, you'll hear inexperienced investors talk about a low P/E ratio being "good," and a high P/E being "bad." At the end of the day, these are just accounting terms. They don't have moral postures, nor do they necessarily imply an accurate assessment. For instance, a low P/E suggests that a company is undervalued. But it could also mean that the company's business stinks, and therefore, it can't attract investors at any price. On the flipside, a high P/E doesn't always mean overvalued. For instance, a high-flying tech firm may lever an innovative product. Investors see the potential, and are willing to pay a rich premium against its earnings. What we have with FB stock is a dominant organization that fell under hard times. Admittedly, management brought the troubles to themselves. However, it has a fairly straightforward path to redemption. Look, Equifax compromised most of today's working Americans for the rest of their lives! Unlike credit cards, the process for getting a new social security number is complex. If people can forgive the unforgivable, they can certainly give a pass to FB stock. ### Facebook Enjoys the Credibility Factor Usually, social-media platforms cater toward a specific audience. For example, Snap (NYSE:SNAP) tilts significantly toward the youth demographic. Twitter (NYSE:TWTR) appeals to celebrities, businesses and the most-important office in the world. But the beauty of Facebook is that the platform covers all angles. If you're on social media, this is the one account you must create. Whether you're an individual, a non-profit organization or the White House, almost everybody has a Facebook account. This advantage lends unprecedented credibility for FB stock. Thanks to its two-billion plus subscribers, management doesn't need to impress anyone. The harsh reality is that if you want anything done, Facebook represents your best bet. Therefore, you can expect the advertising dollars to continue rolling in. * 7 Media Stocks That Make Prime M&A Targets Moreover, the company is not going to lose this critical moat. As we shift further away from analog mechanisms, FB has increased its relevancy. For instance, if I want to find out more about an event or organization, I'll peruse Facebook. This is their public face, so it's sure to contain updates and pertinent information. ### It's the Ultimate Disruptor Many people add to their Amazon holdings because the e-commerce giant is relentless. They don't want to merely dominate their own industry. Increasingly, and to the annoyance of soon-to-be competitors, Amazon has targeted other sectors. So if it's disruption that you love, you should really check out FB stock. Within social media, management has addressed its youth vulnerability through its Instagram acquisition. The photo-sharing app has spiked in popularity, and is biting into Snapchat's market share. Another opportunity is in sports streaming. Several contenders have thrown their names into the arena, but Facebook again has the most credibility. Because it has such a massive global reach, management can stream multiple sports leagues for various regional markets. Last summer, Facebook bought the rights to stream La Liga football (soccer) games in India and several neighboring countries. The move makes perfect sense. Just in India alone, Facebook levers 270 million users. That's more subs than Snap has globally. The bottom line: Facebook owns social media. Now, it's ready to disrupt and dominate other markets. As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Companies That Could Post Decelerating Profits * 10 A-Rated Stocks the Smart Money Is Piling Into * Mizuho: 7 Long-Term Value Stocks to Buy Now Compare Brokers The post 5 Reasons Why You Need to Buy Facebook Stock At This Price appeared first on InvestorPlace.